We've stopped wondering how low mortgage rates can go, but the week of Oct. 11th brought another round of lower mortgage rates. Concerns about high numbers of foreclosures and complications with foreclosure processes could be negatively influencing housing markets.
Another week of lower mortgage rates reflects concerns about housing markets and possibly the influence of mortgage foreclosures and complications related to processing them. HSH Associates reports that average combined rates for conventional and jumbo mortgage rates fell across the board. Rates for a 30 year fixed rate mortgage (FRM) loan fell by 4 basis points to 4.62 percent, while mortgage rates for a 15 year FRM also fell by 4 basis points to 4.07 percent. Mortgage rates for a 5/1 adjustable rate mortgage (ARM) fell from 3.58 percent to 3.55 percent.
These exceptional rates can provide first time and moderate income home buyers affordable opportunities for buying, while homeowners wishing to refinance can enjoy lower monthly mortgage payments.
Mortgage rates and housing markets: What's the deal with foreclosures?
Foreclosed homes are a problem for housing markets, as they're often vacant, neglected, and can become visual nuisances or magnets for crime. Foreclosed homes can drive down property values, particularly in areas with high numbers of vacant foreclosed homes. Recent developments causing several major mortgage lenders to stop foreclosures in process means that homes being foreclosed by these lenders will sit in limbo until legal details are resolved.
Competitive mortgage rates and rehab loans available for purchasing foreclosed homes
If you're considering buying a foreclosed home, engage the help of a real estate professional specializing in distressed properties. Buying a home at a foreclosure sale or auction can be risky, as title problems and other potential legal issues can cause long delays in acquiring the property.
Benefits of buying a foreclosed home can include getting a good deal for the price paid, along with concessionary financing provided as an incentive to buyers. Mortgage lenders aren't in the business of selling homes, and will typically offer foreclosed homes, especially those in rough shape, at low prices. The FHA 203 (k) program offers mortgage loans purchasing and renovating homes.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
